FraudTalk is a blog focused on the review and discussion of recent significant cases of fraud, corruption and employee misconduct - particularly major embezzlement cases in the US. Fraud Talk is published by Chris Marquet, Chairman & CEO of Marquet International Ltd., an international investigations, litigation support and due diligence firm.

Friday, July 29, 2011

Henry W. Swincinski, 59, of Paint Township, Pennsylvania has been charged with embezzling $825,000 from the Windber Fire Company and Northern EMS for both of which he had served as financial controller. According to authorities, over a 9 year period, from January 2001 to January 2010, Swincinski wrote about 975 checks to himself from the two organizations. He was first charged in February on numerous counts of theft by deception. The new charges include an additional 691 counts of thefts by deception. He had been a firefighter since 1974.

Thursday, July 28, 2011

Marie A. Watkins, 57, of Twins Falls, Idaho, has been charged with embezzling more than $366,000 from Alliance Title and Escrow of Boise where she had been employed. According to reports, Watkins allegedly admitted she stole the money over a period of about 10 years to pay her bills and childrens' college expenses. She was terminated at the end of last year after the thefts were discovered and verified by an independent auditor. Full details have not yet been released.

Nancy John, believed to be in her early 40s, of Glendale, Arizona and formerly of Pocatello, Idaho, has been charged with embezzling more than $100,000 from New Day Products and Resources, a non-profit for which she had served as chief executive officer. According to authorities, John made numerous funds transfers from New Day's accounts to her own and used the organization's credit card for personal purposes. She has been charged with 35 counts of theft by embezzlement. According to published reports more than 30 employees claim to have lost benefits as a result of John's thefts.

Update (5/29/12): John has been sentenced to 10 days in jail followed by 10 years of probation for embezzling what the non-profit alleges is as much as $175,000. She has also been ordered to pay $20,000 in restitution.

Monday, July 25, 2011

Carol Crawley Maultsby, 56, of Winston-Salem, North Carolina has been arrested and charged with embezzling at least $620,000 from Novant Health, a non-profit operator of 13 hospitals for which she had been employed as vice president of corporate risk management with access to "self-insurance accounts." According to authorities, over a period of 8 years, beginning in 2003, Maultsby siphoned funds from the accounts for her own benefit. She had been a 10 year veteran employee.

Update (2/22/12): Maultsby pleaded guilty yesterday to charges she embezzled about $620,000 from Novant Health. She reportedly took the money "because of the financial pressures from a divorce and caring for family, including her sick mother."

Sunday, July 24, 2011

Alvin Danielle Allen, 42, of Lancaster, California, pleaded guilty to federal tax evasion charges in connection with his alleged embezzlement of some $300,000 from the Lancaster Baptist Church where he was a deacon and a church board member. Allen was also a special agent for the Inspector General's Office of the National Aeronautics and Space Administration (NASA). According to authorities, over a period of at least five years, from 2004 - 2009, Allen regularly stole from the congregants’ cash contributions. Allen, who was previously convicted on state embezzlement charges in the same case, faces up to 3 years in prison and agreed to pay all additional taxes, interest and penalties owed.

Saturday, July 23, 2011

Ken “Shorty” Ames, believed to be in his 50s, of Eureka, California, pleaded guilty this week to charges he embezzled $250,000 from Pierson's Building Center where he had been employed as head of the store’s charge center responsible for vendors. According to authorities, Ames' scheme spanned a five year period from at least January 1, 2006 until January 1, 2011. He was sentenced to 270 days, plus 90 days already served in an alcohol treatment facility. According to reports, Ames was a 20 year employee of the store and the thefts may have gone on for much longer than the 5 year period prosecutors focused upon. Ames was also the coach of the Humboldt Crabs baseball team.

Friday, July 22, 2011

Gregory Woods, 48, of Louisville, Kentucky, was sentenced today to 8 years in prison for embezzling nearly $1 million from Toyota of Louisville where he had been employed as the dealerships used car manager. According to authorities, over a five year period, Woods siphoned funds from the dealership to fuel a gambling addiction. Woods was originally charged with 183 counts of theft by unlawful taking and forgery last August 2010.

Rebecca Workman of Overland Park, Kansas, was sentenced last month to 60 months in prison for embezzling more than $800,000 from Summit America Insurance Services, Inc. where she had served as chief financial officer. According to authorities, Workman made numerous transfers of funds to her personal bank account for her own benefit to fuel a gambling habit. Workman, who pleaded guilty last April to four felony counts, agreed to pay restitution as part of the plea agreement.

Laura Marie Edwards, 39, currently of Providence, Rhode Island, but formerly of Multnomah County, Oregon, pleaded not guilty yesterday to charges she embezzled $213,787 from the Oregon Halfway House for which she had served as executive director. According to authorities, Edwards skimmed the funds from the federal facility over a period of about 3 years, from 2007 to 2010. Edwards reportedly skipped a June 27 court appearance, turning up at a Rhode Island hospital after an apparent attempted suicide. According to reports, the internal investigation also determined that Edwards has embezzled from a California halfway house. The specific method of embezzlement has not been revealed.

Stephen Bradley "Brad" Budner, 32, of Windsor, Colorado, has been charged with embezzling more thanearly $259,000 from the Cache Bank and Trust in Greeley where he had been employed as a bank officer. According to authorities, Budner administrative responsibility for various customers' retirement plans and, over a period of 3 1/2 years, from December 28, 2006 to May 29, 2010, redirected forfeited retirement funds in 45 transactions for his own benefit. Budner has reportedly repaid about $221,000, but faces up to 12 years in prison if convicted.

Ruben Rios Jr., 40, of Galt, California, pleaded guilty yesterday to charges he embezzled $876,661 from POS Portal Inc., an electronics payment equipment company where he had been employed as financial controller. According to prosecutors, over a 21 month period December 2007 and August 2009, Rios fraudulently used the company credit card to make numerous payments on his behalf, including more than $360,000 in cash advances at casinos. He faces up to 20 years in prison when he is sentenced on November 3, 2011 and has agreed to pay restitution and forfeit items purchased with the ill-gotten monies. Rios was originally indicted this past March and allegedly submitted falsified credit card statements to cover his thefts.

Thursday, July 21, 2011

Ernest Milewski, 61, of West Pittston, Pennsylvania, has been charged with embezzling more than $200,000 from the United Food and Commercial Workers (UFCW) Northeastern District Council, where he had served as president. According to authorities, Milewski wrote unauthorized union checks to himself and received unauthorized expense reimbursements by double billing the international and district unions. He also allegedly embezzled funds from a fund set up by the UFCW to help pay for member health costs. Milewski, who was president of the union from 1996 until 2008, faces up to 15 years in prison, plus fines and restitution if convicted.

Wednesday, July 20, 2011

Carrie Fisher, 39, of Lowell, Michigan, has been charged with embezzling nearly $100,000 from the Lowell Area Schools Athletic Boosters for which she had served as treasurer. According to authorities, Fisher admitted to investigators that she began stealing from the club in 2008 shortly after she became treasurer. Fisher, who resigned earlier this year, reportedly wrote herself and her company checks, forging the president's signature. She has been charged with embezzlement of more than $50,000, forgery, and using a computer to commit a crime. A total of $98,588 is believed to have been embezzled by Fisher.

Sharon Oczkowski, 58, of Whitesboro, New York, pleaded guilty today to charges she embezzled $617,000 from Eastern Star Home & Campus where she had been employed as a bookkeeper. According to authorities, over a period of at least 4 years, from 2006 - 2010, Oczkowski wrote "hundreds" of checks for her own benefit, cashing them with a resident's account. Oczkowski, who was originally charged last December, is reported to have spent the money at the Turning Stone Resort Casino. She faces up to 13 1/2 years in prison, plus restitution upon sentencing, scheduled for September 13, 2011.

Diana Frey, 51, of Cincinnati, Ohio, was indicted today on federal charges she embezzled $757,009 from the Cincinnati Organized and Dedicated Employees Union where she had served as its president. According to prosecutors, over a period of 6 1/2 years, since 2005, Frey siphoned funds from the union by fraudulently writing checks, making wire transfers, ATM withdrawals and credit card purchases to funnel members’ payments into her own accounts or use them for her own benefit. She faces up to 20 years in prison, plus fines and restitution, if convicted.

Brenda Wolcott-Kelly, 53, of Sunny Isles, Florida, has been charged with embezzling at least $170,000 from the Fort Lauderdale-based law firm of Hermelee & Geffin, where she had served as office manager and paralegal. According to authorities, Wolcott-Kelly siphoned funds to pay personal credit cards and other personal expenses over a several year period. An investigation is continuing to determine the full scope of the embezzlement. She is being held on $116,000 bail.

Tuesday, July 19, 2011

Torlando Ramont Childress, 40, of Hopkins, South Carolina, pleaded guilty today to embezzling some $377,000 from South Carolina Community Bank where he had served as chief financial officer. According to authorities, over a period of about 3 1/2 years, from September 2006 to March 2010, Childress siphoned monies from two accounts of the bank. Childress faces up to 30 years in prison, plus restitution and a $1 million fine upon sentencing for the count of embezzlement by a bank employee, scheduled for October 2011.

Tomi Ann Kennedy, 42, of Payson, Arizona, was sentenced to one year in prison for embezzling $116,000 from the Star Valley Veterinary Clinic where she had been employed as an office manager. According to authorities, over a 9 year period, beginning in November 2002, Kennedy took cash receipts and cashed checks for her own benefit. She was also ordered to pay full restitution and will have 5 years of probation following her prison term. Kennedy reportedly embezzled the money to pay for an online shopping addiction. Meanwhile, the clinic was forced to lay off two employees, cut pay and benefits and its owner has had to borrow money to keep the business afloat.

Monday, July 18, 2011

Joseph DeAngelo, 50, of Watertown, Connecticut, has been charged with embezzling some $200,000 from BCI Financial Corp., where he had been employed as a vice president. According to authorities, DeAngelo has been charged with four counts of first-degree larceny, eight counts of second-degree forgery and one count of third-degree computer crime. Full details have yet to be released.

Sunday, July 17, 2011

Rhonda Lee Wilson, 58, of Ottawa County, Michigan, was sentenced to 8 months in prison and ordered to pay $180,415.04 in restitution for embezzling from the orthodontist practice of Dr. Daniel George and Dr. Cadie George, where she had been employed as office manager. According to reports, over a period of at least 3 years, from 2007 through 2010, Wilson skimmed from the cash receipts and made payments to herself disguised as legitimate vendor payments. Wilson, who was a trusted 28-year employee of the practice, as part of a plea agreement, pleaded guilty to the lesser charge of embezzlement of between $50,000 and $100,000.

Thursday, July 14, 2011

Amy Joyce Cameron, 38, of Washington, Oklahoma, has been sentenced to 30 months in prison for embezzling nearly $456,000 from Quality Plumbing and Heating where she had been employed as a bookkeeper. According to prosecutors, over a 3 year period, from March 2007 through February 2010, Cameron wrote a series of checks to herself from company coffers and deposited those checks into her own accounts for her personal benefit. Cameron, who pleaded guilty on February 11, 2011 to embezzlement and money laundering charges, was also ordered to pay restitution in the amount of $455,904.73.

Wednesday, July 13, 2011

Lori Lamb, 50, of Boardman, Ohio, has been charged with embezzling some $175,000 from Morris Drain Service where she had been employed as an office manager. According to authorities, Lamb padded her paychecks, paid her personal credit cards from company accounts, cashed forged company checks and stole petty cash over a period of at least 3 years.

Tuesday, July 12, 2011

Judy Jean Jones, of Portage, Michigan, has been charged with embezzling about $400,000 from CTS, a unit of Climax Telecom Company, where she had been employed as a bookkeeper. According to authorities, Jones wrote company checks to herself and for her own benefit for years. Further details have not been released.

Update (4/30/12): Jones, now 59, has been sentenced to 2 1/2 to 20 years in prison and ordered to pay $318,291 in restitution. Jones is now believed to have embezzled more than $419,000 from CTS, a unit of Climax Telecom Company over a 3 1/2 year period from January 2007 to June 2010.

Monday, July 11, 2011

Teresa Lynn Peterson, 55, of Renner, South Dakota, has been charged with embezzling $118,000 from Ward Enterprises, a company that runs several assisted living centers in the state, where she had been employed as business office manager. According to authorities, over a period of about 4 years, from 2007 through May 2011, Peterson issued herself extra pay through the company payroll system and forged checks for her own benefit. Peterson was charged last month with aggravated grand theft by embezzlement of more than $100,000 and grand theft by embezzlement of more than $1,000.

An analysis of major embezzlements reveals a host of cases in just the past six months at non-profit organizations. Clearly a lack of controls is the principal reason for these thefts. Unfortunately, non-profits generally do not have the resources for a robust financial control environment. However, as previously outlined, there are a number of practical actions that can be taken to improve/prevent or detect frauds.

June 2011 - Valerie Tebbetts, 54, formerly of Dorchester, Massachusetts, was indicted on charges alleging she embezzled more than $126,000 from The Living Center, a local HIV/AIDS charity group for which she had served as the executive director. According to prosecutors, over a period of more than 2 years, from September 2008 to November 2010, Tebbetts issued numerous checks to pay for personal expenses, including her rent as well as made numerous cash withdrawals from the charity's accounts. Tebbetts was indicted on three counts of larceny by embezzlement over $250 and false entries in corporate books. Her case is pending.

June 2011 - Ralph R. VanAlstyne Sr., 62, of Gloversville, New York was pleaded guilty to charges charges he embezzled more than $200,000 from three non-profit veterans organizations: the American Legion Harold Wilmont Post 137, the Veterans of Foreign Wars Bernard W. Kierney Memorial Post #2077 and the Fulton County Disabled American Veterans Chapter 122, where he held fiduciary positions. According to prosecutors, VanAlstyne's scheme spanned nearly 4 years from January 2005 until December 2008. The scheme involved the siphoning of funds from the organizations' revenues from gaming operations. Prosecutors alleged that VanAlstyne shifted funds between accounts in an effort to hide his thefts.

June 2011 - Connie A. Stills, 56, of Middleton, Idaho, was sentenced to 41 months in prison for embezzling $1.3 million from the Port of Hope Centers Inc., a non-profit drug and alcohol treatment concern where she had been employed as a bookkeeper. According to prosecutors, Stills siphoned the funds over a period of four year, from 2004 until 2008, by writing checks from the non-profit's coffers to pay for her credit card bills and other personal expenses. She pleaded guilty in September 2010 to felony counts of filing a false tax return and mail fraud. Stills was also ordered to pay $1.7 million in restitution. Still's daughter, Bobbie A. George, 31, also of Middleton, plead guilty for her involvement in the theft of some $177,000 from the agency and was sentenced to five years probation and ordered to pay $233,024 in restitution. Stills had been an employee of the agency for nearly 20 years.

June 2011 - Diana Hubbard Carr, 56, of Alexandria, Virginia, pleaded guilty to charges she embezzled as much as $400,000 from the American Conservative Union where she had been employed as an administrative director. According to authorities, Carr's scheme spanned at least 3 years from 2006 through 2009 and involved the diversion of funds from the non-profit's coffers into her own accounts. She was also accused of paying her credit cards and making personal purchases with the organization's funds. The ACU hosts the annual Conservative Political Action Committee (CPAC) meeting. Carr faces up to 20 years in prison upon sentencing, scheduled for September 16, 2011.

May 2011 - John Willis Hurst, 51, of Charlotte, North Carolina, was sentenced to 12 to 16 months in prison for embezzling more than $300,000 from the Matthews Playhouse of the Performing Arts where he had served as treasurer. According to authorities, over a period of 7 years, from 2002 until August 2009, Hurst siphoned funds from the non-profit’s coffers. Hurst was arrested in June 2010 and pleaded guilty earlier in May 2011. However, details are unclear as to how Hurst embezzled the monies. Hurst was also ordered to make restitution to the playhouse and to pay court costs.

May 2011 - Lynette Rojas, 37, of La Habra, California, was sentenced to 3 years in prison for embezzling $134,540 from the La Habra Boys and Girls Club where she had been employed as an executive assistant with bookkeeping responsibilities. According to authorities, Rojas stole more than $109,000 in cash from the club and wrote more than 2 dozen unauthorized checks to herself totaling nearly $25,000. The thefts spanned more than 2 ½ years, beginning in April 2008 and she reportedly used some of the stolen funds to pay for breast implants. Rojas was arrested and charged in December 2010 with grand theft by embezzlement and 24 felony counts of computer access and fraud and subsequently pleaded guilty in April 2011. As a result of Rojas' alleged thefts, several employees had to be laid off and cut off programs for needy children.

May 2011 - Vincent Paul Reed Jr., 58, of Shapleigh, Maine, was charged with embezzling about $1.25 million from the Massachusetts Grand Lodge of Masons where he had served as treasurer. According to authorities, Reed's scheme spanned a period of about 7 years, from 2001 to 2008. He is alleged to have siphoned funds from the non-profit’s investment accounts and transferred the monies to operating accounts he controlled and used a debit card to pay for personal items, expenses and debts. His case is pending.

May 2011 - Gayle J. Tatman, 59, of Grove City, Ohio, was sentenced to 2 years in prison for embezzling nearly $213,000 from the Grove City Food Pantry for which she had served as treasurer. According to authorities, Tatman siphoned the funds, amounting to half of the non-profit pantry's cash, over a period of 7 years, from May 2002 until April 2009. Tatman's scheme involved forgery of checks and at least four of the organization's bank accounts, including one that was supposed to have been closed out years ago. Tatman pleaded guilty in a plea agreement in January 2011 to one count of bank fraud.

May 2011 - James T. Wagner, 69, of South Dartmouth, Massachusetts, was charged with embezzling more than $100,000 from the Andrews-Dahill Post of the Veterans of Foreign Wars where he had served as quartermaster for 21 years. Wagner is believed to have written checks out to himself as well as to fictitious businesses and individuals as well as real people, including the infamous Lorena Bobbitt. Wagner’s case is pending.

May 2011 - Joyce Bidnick, 58, of New City, New York was charged with embezzling more than $100,000 from the New City Little League for which she had served as volunteer treasurer. Bidnick is accused of writing checks to herself for nearly 8 years, since 2003 and then falsifying the non-profit league's books to hide her thefts. Meanwhile a forensic audit is still in process. Bidnick’s case is pending.

April 2011 - Sheila Elliott, 62, of Hendersonville, North Carolina, was charged with embezzling $100,515 from Elks Lodge 1616, where she had been employed as an office manager "entrusted to receive money". According to authorities, Elliott's scheme spanned a two year period, from July 1, 2008 until July 16, 2010. Her case is pending.

April 2011 - Eric Wayne Stroschein, 49, and Judith Ann Stroschein, 46, both of Blythe, California, were arrested and charged with embezzling more than $100,000 from the Blythe Jaycees where Eric had served as treasurer. According to authorities, Eric Stroschein made withdrawals from the non-profit Jaycees account and deposited the monies into his own and his wife's accounts. The two have been charged with felony embezzlement and conspiracy. Their cases are pending.

April 2011 - Kathy Dishman White, 40, of Abingdon, Virginia, was sentenced to 53 months in prison for embezzling $225,079.65 from the Southwest Virginia Emergency Medical Services Council where she had been employed as a bookkeeper. Authorities alleged that over a four year period, beginning in 2006, White misappropriated small, but regular amounts of money by utilizing the non-profit's credit cards for personal use. She then attempted to cover-up the thefts by issuing checks from the organization's checking account to pay the credit card bills. She was accused of using the stolen funds to pay for a house and all kinds of personal luxury items. The non-profit operated on a budget of only $500,000. Dishman-White, who pleaded guilty in November 2010, was also ordered to pay restitution.

April 2011 - An unnamed female former bookkeeper for the Washington State Superior Court Judges' Association is being investigated for embezzling as much as $400,000 from the non-profit group. According to reports, the bookkeeper was fired in April 2010 after an internal investigation revealed the misappropriation. The thefts allegedly spanned "several years." The matter has been turned over to law enforcement officials for investigation and possible prosecution. Specific details about the case have yet to be released.

March 2011 - Patricia M. "Trish" Dano, 43, of Naples, Maine, was accused in a civil lawsuit of embezzling about $117,000 from the Maine Island Trail Association, a non-profit environmental association where she had served as business manager. According to the lawsuit, Dano used the organization's credit card for personal expenses and forged checks for her own benefit and then created “parallel and inaccurate banking records” to hide the misappropriations. She is also alleged to have caused unauthorized electronic funds transfers to pay her personal credit card bills. The thefts allegedly spanned a 4 1/2 year period, from August 2006 until early February 2011, when her position was eliminated and suspicious transactions were discovered. Dano has reached a civil restitution agreement with the association to pay back the funds. It is not known whether law enforcement authorities are investigating.

March 2011 - Thomas Ray Martin, 47, of Concord, California, was charged with embezzling about $162,000 from the Discovery Counseling Center of the San Ramon Valley, a Bay Area non-profit mental health organization where he had served as director. According to authorities, Martin used a debit card linked to the checking account of the organization to pay for personal expenses and luxury items. His misappropriations allegedly spanned more than three years, from July 2007 until September 2010. The thefts were quantified after an audit was conducted following allegations of Martin's misconduct and he was terminated last October. Martin has been charged with 4 felony counts of grand theft by embezzlement and has pleaded not guilty. His case is pending.

March 2011 - Carolyn Mitchell, 47, of Washington, DC, pleaded guilty to charges she embezzled $210,800.42 from the National Consumers League where she had been employed as an accountant and an administrative assistant. According to authorities, over a period of more than 5 years, from March 2005 to May 2010, Mitchell misappropriated funds from the private non-profit by depositing checks meant for vendors into her own accounts. She also deposited donor checks into her own accounts. Mitchell, who pleaded guilty to forging securities, was sentenced to 27 months in prison on June 24, 2011 and ordered to pay restitution.

March 2011 - Kirk McDaniel Jr., 74, of Prairie Village, Kansas, was indicted on charges he embezzled nearly $285,000 from the York Rite Masonic Bodies in Kansas City, Missouri, where he had served as Secretary and Treasurer. According to prosecutors, McDaniel made electronic funds transfers from the non-profit Masonic accounts to several accounts he controlled over a period of as long as five years from June 2000 and September 2005. McDaniel was indicted on 18 felony counts, including 16 counts of bank fraud and 2 counts of money laundering. McDaniel has reportedly paid back $105,012 of the $284,675 he allegedly stole, according to authorities. His case is pending.

March 2011 - Cheri A. Logue, 42, of Claysville, Pennsylvania, was sentenced to 22 months in prison for embezzling about $195,000 from the Southwestern Pennsylvania Legal Services Corporation where she had served as legal aid. According to authorities, Logue misappropriated the funds from the non-profit agency that provides legal services to low-income people, over a period of at least 7 years, from 2001 until June 2008. According to prosecutors, Logue misappropriated the funds by writing at least 86 checks to herself or for her own benefit; made at least 56 unauthorized cash withdrawals using an agency ATM card; made at least 25 unauthorized electronic transfers to herself or to pay for personal expenses; and made more than 300 unauthorized and improper charges to an agency credit card for her own benefit. Logue, who was fired in June 2008 after suspicions were raised about missing funds, pleaded guilty to the charge of theft from a program receiving federal funds on April 27, 2010.

February 2011 - Deborah A. Leggio, 47, currently of Tracy, California and formerly of Long Island, New York, was arrested and charged with grand larceny in connection with her alleged embezzlement of $274,301 from the Suffolk County chapter of the American Red Cross in Long Island, New York where she had served as finance director. According to prosecutors, Leggio used a Red Cross debit card, issued in her name, to make numerous unauthorized cash withdrawals over a period of more than four years between August 2005 and November 2009. Her case is pending.

February 2011 - Bettysue Higgins, 53, of Gardiner, Maine, was arrested and charged with embezzling about $166,000 from the Maine Trial Lawyers Association where she had served as an administrative assistant. According to authorities, Higgins issued at least 220 forged checks from the non-profit to herself over a period of about 4 years, from 2006 until October 2010. She has been charged with one count of theft by unauthorized taking or transfer and one count of forgery. Higgins is also a defendant in a civil lawsuit filed by the association seeking recovery of the misappropriated funds. Her case is pending.

January 2011 - Hugh Michael Robey, 48, of Bowie, Maryland, was sentenced to one year in prison for his role in an embezzlement scheme that bilked some $1.7 million out of the American Board of Opticianry and the National Contact Lens Examiners, where he had served as Executive Director. According to prosecutors, Robey used the non-profits funds to take trips and buy expensive items for his family and friends. He reportedly conspired with Carletta Carter Stewart, 45, of Fredericksburg, Maryland, the group's Chief Financial Officer and Legal Officer. Stewart is believed to have written about $1.1 million worth of checks and other association credits to herself. The schemes spanned a six year period from January 2004 to July 2010, in which they allegedly covered for each other. Robey pleaded guilty to four counts of embezzlement. He was actually sentenced to four 10 year sentences with 9 years suspended on each count, to be served concurrently.

January 2011 - Christina Madej, 58, of Chicago, Illinois, was charged with embezzling nearly $290,000 from the Chicago Engineers’ Foundation, a non-profit that provides scholarships to area students, for which she had served as its director. According to authorities, Madej wrote checks to herself from foundation accounts. The foundation is affiliated with the Union League Club of Chicago. Her case is pending.

January 2011 - Diana Lynn Lewis, 44, of Boulder, Colorado was arrested on charges she embezzled $178,000 from the non-profit Impact on Education, where she had been employed as a bookkeeper. According to authorities, Lewis forged numerous checks from the charity that supports the Boulder Valley School District over a period of six years, between 2004 and 2010. According to reports, Lewis has a prior conviction for fraud, although details are not available. In June 2011, Lewis was sentenced to 6 years in jail.

January 2011 - Ronald E. Partee, 45, of St. Louis, Missouri, pleaded guilty to charges he embezzled more than $1 million from MERS/Goodwill Industries, where he had served as an assistant vice president in the human resources department and had specific fiduciary duties. According to authorities, Partee wrote checks to several bogus businesses and accounts to which he was the sole beneficiary. The scheme reportedly began in January 2007 and spanned 3 1/2 years until July 2010 when it was uncovered and he was fired. Partee purchased a Porsche automobile and other luxury items with the stolen money. He also accepted tuition reimbursements for law school which he never attended. Partee pleaded guilty to one felony count of embezzlement and one felony count of money laundering. In May 2011, Partee was sentenced to 70 months in prison.

January 2011 - Marcia Jackson, 51, of Florissant, Missouri, was sentenced to 7 years in prison for embezzling more than $650,000 from the Show-Me Institute, a local non-profit think-tank, where she had been employed as an office manager. Jackson, who was originally charged in July 2010, pleaded guilty in November 2010 to one count of theft greater than $25,000 and 24 counts of fraudulently using a credit device. Authorities alleged that over a period of three years, from November 2006 to December 2009, Jackson misappropriated the funds from the institute and used the monies to pay for home repairs, spa treatments, hair replacement treatments, jewelry and numerous vacations. According to reports, Jackson was fired for unprofessional conduct and insubordination and an audit ensued, which revealed the thefts.

Friday, July 8, 2011

Lisa Rae Price, 43, of Herculaneum, Missouri, has been sentenced to 18 months in prison for embezzling more than $168,000 from Paradise Fiberglass Pools Inc., where she had been employed as a bookkeeper. According to authorities, over a period of 5 1/2 years, from January 2005 to July 2010, Price company ATM card to withdraw cash from company bank accounts for her personal use. Price reportedly spent much of the ill-gotten gains at regional casinos. She also spent money on personal items and personal bills. Price allegedly attempted to commit arson in an effort to cover up the thefts. Last April, Price pleaded guilty to one felony count of wire fraud.

Thursday, July 7, 2011

Bong Soo Kim, 52, of Fullerton, California has been arrested and charged with embezzling more than $140,000 from the Korea Times, a newspaper he had been employed by for 20 years. According to authorities, Kim solicited advertising and had the checks made out to him personally, depositing them into his own accounts. The thefts reportedly began in 2009 and were discovered last year.

Wednesday, July 6, 2011

Tonya Drury, 37, of Bethel, Vermont, has been charged with embezzling $173,000 from the Bethel/Royalton Solid Waste Facility where she had been employed as a cashier. According to prosecutors, over a period of about 5 years, from 2005 until 2010, Drury regularly skimmed cash receipts paid by customers and altered company books and records in an effort to hide the thefts.

19 out of the 21 cases (90.5%) involve an alleged perpetrator who held a bookkeeping, finance or other fiduciary position;

4 out of the 21 cases (19%) involve an alleged perpetrator with a prior history of fraud;

Average duration: 7 years

June 2011 - Eun Tae Lee, 50, of Fairfax, Virginia, was sentenced to 1 year in jail and ordered to pay restitution for embezzling more than $700,000 from Seed International Inc., a missionary company sponsored by the Korean Central Presbyterian Church for which he had served as Chief Administrative Officer. According to authorities, Lee gained control of Seed International's bank account and wrote checks to accounts he had set up in his own name. The thefts are believed to date back to at least 2006. Lee is reported to have used the ill-gotten gains to finance a lavish lifestyle including the purchase of a Porsche Cayenne sport-utility vehicle.

May 2011 - Beth Ann Boger, 44, of Garrett, Indiana, was charged with embezzling more than $364,000 from the St. Joseph Catholic Church where she had served as bookkeeper. According to authorities, over a nearly five year period, from June 2004 to April 2009, Boger wrote checks from church coffers to a business she owned called Accents By Beth and used the money for her own benefit. Boger was indicted on six counts of felony wire fraud and four counts of felony tax evasion. Her case is pending.

May 2011 - Louanne Aponte, 52, of Austin, Texas, was sentenced to 25 years in prison for embezzling more than $1 million from Family Connections, a child care services non-profit, for which she had served as executive director. She also took funds from the Texas Association of Child Care Resource and Referral Agencies and the Hyde Park Christian Church, where she had served as treasurer, according to prosecutors. When a state audit found that Aponte had falsified records, she reportedly fled to Venezuela in February 2010, but returned six months later when she was arrested. Louanne Aponte, formerly known as Louanne Shetter, was twice convicted on embezzlement charges in the 1980s, according to reports.

May 2011 - Raiffeisen Regalado, 41, last known to reside in Methuen, Massachusetts, was being sought by authorities in connection with his alleged embezzlement of $106,570 from the Seventh Day Adventist Church in Lawrence where he had served as treasurer. The embezzlement occurred in 2006 and 2007, but charges were not brought until recently, after he failed to make restitution as he reportedly agreed to do with church officials. The thefts involved fraudulent transfers of funds from church accounts to Regalado's personal accounts over that two year period.

May 2011 - Kathleen "Kathy" Dake, 58, of Danville, California, and two cohorts were arrested and charged with embezzling nearly $600,000 from the St. Isidore's Catholic Church in Danville, where Dake had served as office manager. According to authorities, Dake was a volunteer with the church's finance committee and together with her accomplices, systematically looted its finances by making unauthorized credit card charges for personal purposes as well as writing church checks for their own benefit. Approximately $580,000 is believed to have been misappropriated by the trio. Her case is pending.

April 2011 - Jessica Lynn Tramel, 32, of Bristol, Tennessee, was charged with embezzling some $229,265 from the Unaka Avenue Baptist Church where she had served as church secretary. Tramel was charged with 150 counts of forgery, theft of property over $60,000 and identity theft. Tramel is believed to have issued checks to herself and forging signatories signatures. Her case is pending.

March 2011 - Jon Michael Ruppel, 46, of St. Joseph, Michigan, was charged with embezzling nearly $300,000 from Saint Peter's United Church of Christ where he had served as church treasurer. According to authorities, Ruppel's thefts spanned an 8 year period beginning in or about 2002, by taking cash from the collection plate as well as fraudulently withdrawing funds from the church's gift account for his own benefit. Ruppel’s case is pending and he faces up to 20 years in prison if convicted of the charge of embezzlement of more than $100,000.

February 2011 - Alan Jonas, 63, formerly of New Britain, Connecticut, was charged with first degree larceny for allegedly embezzling nearly $400,000 from the First Baptist Church in Southington, Connecticut where he had served as head of its finance committee. According to authorities, over a period of six years from 2004 until 2010, Jonas issued at least 111 checks on church accounts to himself or for his own benefit. Ironically, Jonas, a CPA by training, was in prison at the time for embezzling $38,000 from Chorale Connecticut, a non-profit he served as treasurer as well as another $70,000 from an elderly woman suffering from Alzheimer's disease. Jonas was also previously convicted in 1999 of embezzling $22,000 from Middlesex Hospital, where he had served as chief financial officer. His most recent case, involving the First Baptist Church, is pending.

January 2011 - Kenneth Terrell, 46, of Bloomingdale, Georgia, was indicted on charges he embezzled at least $200,000 from the New Harvest International Ministries Church where he had served as pastor. According to the indictment, Terrell skimmed "hundreds of thousands" of dollars from church coffers to support a "lavish" lifestyle over at least a four year period. Specifically, Terrell was charged with 7 counts of wire fraud for which he faces up to 20 years in prison. He has separately been charged with child molestation and sexual battery against a minor, according to reports. Apparently Terrell has a long criminal history that includes prior child molestation charges and multiple DUIs, burglary, forgery, criminal trespass, obstruction, disorderly conduct and drug charges. In May 2011, Terrell plead guilty to one count of wire fraud in a plea agreement in this case and is awaiting sentencing.

January 2011 - Elyse Marie Kennedy, 37, of Santa Ana, California, was charged with embezzling about $129,000 from the St. Paul's Episcopal Church in Tustin where she had served as bookkeeper. The thefts allegedly spanned a period of 2 years, from 2007 until early 2009 whereby Kennedy issued at least 154 checks to herself or for her own benefit. She has been charged with 154 felony forgery counts. We note that Kennedy has a prior conviction for embezzlement in 2005. Her case is pending.

December 2010 - Sandra "Sandy" Arreola, 51, currently of Palm Desert, California, was charged with embezzling about $2.1 million from the Visalia First Assembly Of God church where she had been employed as accounting manager for nearly 13 years. According to authorities, Arreloa skimmed cash from the church over a period of six years, from 2003 until 2009, when the scheme was revealed. She allegedly stole as much as $7,000 a week from the collections and used the money to enrich herself, purchase luxury property and businesses. She has pleaded not guilty to the charges and her case is pending.

November 2010 - Farrukh Ahmed, 48, of Ontario, California, pleaded no contest to charges he embezzled as much as $960,000 from the Calvary Chapel Chino Hills where he had served as church administrator. Ahmed's cash thefts from the church reportedly span a four year period from January 2006 when he was hired as administrator until December 2009 after he was caught by a parishioner stealing cash from the offering envelopes meant for the church. Ahmed was sentenced to only 9 months in prison.

November 2010 - Barbara D. Whitt, 68, and her son Michael Dean Whitt, 42, both of Morristown, Tennessee, were charged with misappropriating more than $1.5 million from the First Baptist Church in Morristown where Barbara had served as church financial secretary for 47 years. According to authorities, Barbara Whitt issued at least 1,650 checks made out to "cash" pocketing the funds. The thefts are believed to have spanned a period of more than 2 years, from January 2008 until April 2010. Michael Whitt is alleged to have participated in the fraud and benefitted from the ill-gotten proceeds. In February 2011, both Barbara Whitt and Michael Whitt pleaded guilty to bank fraud, money laundering and conspiracy charges. They are awaiting sentencing.

November 2010 - Patricia Ladawn Poehls, aka, Rylie Joe Trish Wilson, 37, of Bruceville, Texas, pleaded guilty to charges she embezzled more than $154,000 from St. Jerome Catholic Church where she had served as youth coordinator and bookkeeper responsible for payroll. Prosecutors alleged that over the course of about one and a half years, from January 2007 to June 2008, Poehls pilfered from church coffers to pay for personal luxuries by making unauthorized credit card charges and issuing fraudulent church checks made to herself or personal vendors. In January 2011, Poehls was sentenced to six months in prison and ordered to pay restitution.

September 2010 - David A. Thompson, of Canal Winchester, Ohio, believed to be in his late 40s, was found guilty of embezzling more than $1 million from The World of Pentecost Church in Columbus, where he had served as pastor. Prosecutors alleged that Thompson misappropriated funds from the church over a 9 year period from 1998 to 2007. He was charged with the thefts in 20 felony counts in late February 2009 and was alleged to have stolen funds from the church's building and assistance funds. Thompson apparently used the church as his own personal piggy bank and reportedly spent the ill-gotten gains to support a lavish lifestyle, including expenditures on luxury cars, a pool, a boat and hair treatments. Thompson, who became pastor of the church in 1995, was sentenced to 5 years in prison in December 2010.

September 2010 - Robert G. Mathis, 64, formerly of Birch Run, Michigan, was charged with embezzling more than $100,000 from Christ Lutheran Church in Birch Run where he had served as congregation president for the prior 12 years. Authorities allege that Mathis misappropriated the funds by writing checks for his own benefit and forging signatures of authorized church officials. Mathis has since pleaded guilty to the charges and is awaiting sentencing.

August 2010 - Alan Eugene Roland, 55, and his wife, Linda Guffie Roland, 55, both of Mount Holly, North Carolina, were charged with embezzling more than $360,000 from the Way of the Cross Baptist Church where they had served as Treasurer and Assistant Treasurer, respectively. According to prosecutors, the Rolands used their positions to write more than 800 checks to themselves over a three-year period between 2007 and 2010. Their case is pending.

August 2010 - Michele Moeser Roberts, 61, of Virginia Beach, Virginia, was charged with embezzling nearly $300,000 from King's Grant Baptist Church, where she had served as financial administrator. According to prosecutors, Roberts misappropriated $287,678 from church coffers over a six year period beginning in October 2004. The scheme was not uncovered until the church's new financial administrator took over the job. Roberts pleaded guilty to the charges in December 2010 and was sentenced to 4 years in prison in April 2011.

July 2010 - Kathy Koonts Sechriest, 53, of Thomasville, North Carolina, was arrested and charged with embezzling about $186,000 from the Zion United Church of Christ where she had served as church secretary. According to prosecutors, Sechriest skimmed the funds over a five year period, from January 2005 until January 2010. Her case is pending.

June 2010 - Christine Mae Lorenz, 48, of Okeene, Oklahoma, was charged with embezzling more than $176,000 from the First Baptist Church of Okeene where she had served as treasurer. According to prosecutors, over more than a four year period, between February 2005 and May 2009, Lorenz stole $127,748 from one of the church's accounts. Over a similar period, Lorenz allegedly stole another $48,895 from the church's general fund checking account. Lorenz was hired as treasurer of the church in September 2004 and remained in that position until June 2009 when irregularities were discovered. Her case is pending.

June 2010 - Donna M. Rood, 47, of Tyngsborough, Massachusetts, was indicted for skimming "well over" $100,000 from the collections coffers of the St. Mary Magdalen Roman Catholic Church where she had been responsible for counting collections. Prosecutors allege that over a four year period, from about 2005 until 2009, Rood simply kept some of the cash from the collections, in the form of large cash bills and deposited them into her own accounts. The scheme was uncovered by a parish priest who had suspicions and privately counted the collections and found regular discrepancies with Rood's count. Rood pleaded guilty in June 2011 to larceny by embezzlement over $250 and making false entries in corporate books. For her crime, Rood was sentenced to 5 years probation, plus restitution.

Christopher "Brooke" Beal, 47, of Chicago, Illinois has been sued in civil court in an effort by the Solid Waste Agency of Northern Cook County to recover nearly $1 million he allegedly embezzled from the agency where he had served as Director. Beal was charged in March 2011 with misappropriating the funds, ostensibly for payments for executive and graduate management programs he never attended. Prosecutors alleged that Beal received fraudulent reimbursements over a period of about four years, from 2006 until 2010. Beal had been employed by the agency, which handles garbage collection for 23 towns and municipalities, since 1994.

Marylee M. Hubbard, 30, of Brookings, South Dakota, was sentenced to 3 1/2 years in prison for embezzling $146,600 from Hy-Vee Food Store where she was employed as a pharmacy technician. According to prosecutors, over a period of about 5 1/2 years, from January 2005 to August 2010, Hubbard siphoned cash receipts on a nearly daily basis, depositing most of it into her own bank accounts. Hubbard pleaded guilty last month to aggravated grand theft. At her sentencing hearing, Hubbard, is quoted as saying, “I’m a good person who got caught up in bad choices.”

Nancy M. Poirier, 42, of Williamstown, Vermont has been indicted for allegedly embezzling more than $220,000 from Trono Fuels Inc. where she had been employed as accounts receivable manager. According to prosecutors, over a five and a half year period, from January 2005 to July 2010, Poirier kept cash receipts paid by Trono customers for her own purposes. The thefts reportedly caused financial difficulties for the company.

About the Author - Chris Marquet

Chris Marquet is President, Investigative Services with SunBlock Systems, an investigations, litigation support, computer forensics & cyber security firm. Chris has over 34 years of professional experience in industry with Marquet International and prior stints with Kroll Associates, Citigate Global Intelligence and Decision Strategies/Vance International.
Chris is the author of many articles and white papers, including the annual Marquet Report on Embezzlement as well as the Marquet Report on Ponzi Schemes. He has lectured extensively on subjects relating to employee misconduct; due diligence; business intelligence, internal investigations, fraud, employee integrity, workplace violence, kidnapping, terrorism, crisis management and travel security.
Chris is a Certified Board Advisor and Board Member for the Center for Strategic Business Integrity. He received an A.B. degree from Dartmouth College in 1983, with a triple major in Physics, Economics, and Philosophy.
He can be reached at cmarquet@sunblocksystems.com